Per Capita Consumption in Australia Trends Down

The per capita consumption of olive oil in Australia is on the decline. The graph below shows a steady decline in consumption since a high in 2006. The drop from just under 2.33kg (2.53 litres) per person in 2006 to 1.76kg (to 1.91 litres) indicates a disturbing 25% decline in consumption per person.

Olive Industry Needs a Mantra

The olive industry needs a mantra, spiritual, audible, visible and ever present in the thoughts of policy makers, producers and all those involved in the industry.

It should be invoked before any far reaching decision is made and before any campaign plan is developed and launched.

We suggest the following:

‘All olive oil is better than other vegetable oils and extra virgin olive oil is the best olive oil.’

Making this mantra central to our thoughts may bring the recognition that we must put the progress and public perception of olive products before any utterance which will discredit them.

In the past three years the public perception of olive oil has taken a battering from the self-interested campaigns in many producer and consumer regions which have sought to gain market prominence for a particular brand or region by discrediting other brands or regions. This undermining of consumer confidence is surely contributing to the decline in olive oil consumption in most importing countries, and even in some countries which are major producers.

Competition is necessary for progress, but we should never forget that we are not only competing with other olive oil products, but more importantly, we are also competing with other vegetable oils. Comparative trends show that the olive industry is losing the battle and it is time that industry leaders at all levels showed real leadership and pulled the industry together.

It is also incumbent on those of us involved in the olive industry to reinforce the positives, deal effectively with the negatives and never lose sight of the consumer, who is generally disinterested in the technical and competitive machinations of the industry and just wants an affordable, trustworthy, healthy and flavoursome olive oil.

Per Capita consumption of Olive Oil in US continues to Rise

Data presented at the recent Savantes programme in New York shows that per capita consumption of olive oil in the USA continues to rise steadily.

The consumption per person is approaching I litre per person.

United Kingdom Olive Oil Consumption is Flat

Data presented to Savantes in London in early March shows that consumption of olive oil in the United Kingdom has been around 1 litre per person for the last five years.

There was a slight rise to 1.2 litres in 2011 which can probably be attributed to lower prices.

East Coast Biggest Users of Olive Oil in USA

In an analysis presented to Savantes New York in February, Eryn Balch, Executive Vice President of the North American Olive Oil Association, revealed that the Eastern States consume 54% of all classifications of olive oil in the USA.

Based on the US Census Divisions, the data showed the consumption as New England Division – 9%, Middle Atlantic 23% and South Atlantic 22%. By comparison the West Coast which is covered by the Pacific Division consumed 10%.

Spanish Olive Oil Production Down, Prices Up, Consumption Steady

Drought has affected the Spanish olive crop and forecasters estimate a 30-40% reduction in olive oil yield for the coming harvest. However, this drop in production is to some extent counterbalanced by carryover stocks from the previous record harvest.

International Olive Council data shows in 2011/12 production exceeded consumption. The shortfall in the Spanish crop is expected to return the balance between production and consumption.

Olive oil is part of a group of oils used in cooking and salad dressings. According to forecaster Oil World (www.oilworld.biz) production of these oils will fall up to 18% in the next year.

In anticipation of these shortfalls olive oil prices have jumped significantly. According to Oil World, ‘Domestic prices in Spain for extra-virgin olive oil rose 40 percent from June to about 2,400 euros  a ton in September last week, and could surpass the previous March 2008 high of 2,633 euros to climb to at least 2,800 to 3,000 euros a ton’.

Italy’s olive-oil production, the world’s second-largest, is seen climbing to 540,000 tons from 518,000 tons, while output in Greece may advance to 355,000 tons from 335,000 tons’.

World consumption of olive oil is forecast to stagnate in 2012-13 after climbing for six consecutive years.  “It can be expected that consumption of olive oil will be affected by the prospective high prices and the widening of the price premiums relative to sunflower oil and other vegetable oils,” according to Oil World. (Source Bloomberg and Oil World)

Olive Oil Production Exceeds Consumption

The depressed state of the world trade in olive oil can be partially explained by the simple dynamics of supply and demand. According to the statistics published by the International Olive Council, supply of extra virgin olive oil exceeds demand. This has led to low prices and storage of olive oil in Spain in an attempt reverse the supply/demand situation. However, the stored extra virgin olive oil will deteriorate and its release into the market will increase the availability of lower grade olive oil selling at lower prices and competing with extra virgin olive oil.

Small Gains in Local Oil Consumption in Australia

Analysis of International Olive Council data shows that the percentage of locally produced olive oils sold in Australia has risen approximately 4% over the past 5 years. Consumption of local oils remains at a low level of 27%, despite major publicity campaigns encouraging consumers to buy local and persistent unqualified attacks on the quality of all imported olive oils.

Per Capita Consumption of Olive Oil Increases in the USA

Per capita consumption of olive oil in the USA continues to rise (USDA, World Bank and IOC data). Over the five years from 2007 to 2011 consumption has increased from 0.82 litres per person to 0.88 litres. Most of the olive oil is imported making the US the largest importer outside the European Union. Local production, mainly from California, produces approximately 2% of consumer requirements.